A $1.7 Billion Reason to Buy Bloom Energy Stock Now

Solid oxide fuel cell systems provider Bloom Energy Corporation (BE) recently landed a $1.70 billion deal for fuel cell technology to power artificial intelligence (AI) cloud infrastructure. IDF and Oaktree Capital are committing the sum to Bloom to the meter power solutions for the AI operations of Nebius Group N.V. (NBIS). For investors optimistic about clean energy powering AI data centers, this deal, linking fuel cell energy with AI infrastructure, seems like a huge positive development. 

However, investors did not react positively to the news. The stock dropped 13.64% intraday on July 16, as the market reacted to some other news surrounding Bloom Energy. The company’s stock has come under pressure after a short report questioned its sourcing of Chinese scandium. The Hunterbrook report alleges that Bloom secretly relies on China for scandium, thereby putting its supply chain at risk. Investors have also noted some insider selling activity in the company’s stock. 

While Bloom might be on the beneficiary side of an AI infrastructure boom, there are some concerns surrounding it at the moment. We take a closer look at it now. 

About Bloom Energy Stock

Bloom Energy develops and supplies solid oxide fuel cell solutions that generate on-site electricity and support nascent hydrogen use cases for customers. Its systems deliver distributed, lower-carbon power to AI data centers, semiconductor manufacturers, utilities, and a broad range of commercial and industrial facilities that need reliable, modular energy infrastructure. 

The company’s activities include designing, producing, installing, and servicing its fuel cell platforms, with core operations in the United States and an expanding presence abroad. Bloom Energy maintains its corporate headquarters in San Jose, California and has a market capitalization of $58.80 billion. 

Bloom Energy’s huge move reflects its emergence as a high‑beta “AI power” proxy, as investors price in soaring demand for on-site fuel‑cell power from AI and cloud data centers. 

Over the past 52 weeks, Bloom’s stock has gained a whopping 784.3%, while it is up 147.4% year-to-date (YTD). The company’s shares reached a 52-week high of $351.28 on June 25 but are down 38.6% from that level, having declined 24.6% over the past month. 

On a forward-adjusted basis, Bloom’s price-to-earnings (non-GAAP) ratio of 95.59 times is stretched compared to the industry average of 21.42 times. 

Bloom Energy Posted Record Q1 2026 Revenue, Raises Full-Year Outlook

For the first quarter, Bloom Energy reported record results driven by solid demand for its on-site power solutions. The company’s revenues increased by 130.4% year-over-year (YOY) to $751.05 million. Its non-GAAP operating margin moved from just 4% to 17.3% over the same period. Its non-GAAP EPS for the quarter was $0.44, up significantly YOY. Based on these results, Bloom raised its full-year revenue growth outlook from approximately 60% to 80% YOY. 

Street analysts are robustly optimistic about Bloom’s bottom-line trajectory. For the current fiscal year, EPS is projected to surge considerably annually to $1.43, followed by a 160.1% increase to $3.72 in the next fiscal year. The company is expected to report its second-quarter 2026 results on July 28, after the market closes. Ahead of that, analysts expect its EPS to grow significantly by 866.7% to $0.23 for Q2.

What Analysts Think About Bloom Energy’s Stock

This month, Clear Street analyst Tim Moore reaffirmed a “Hold” rating on Bloom Energy’s stock and assigned a $290 price target. Moore noted that the company’s shares have come under pressure as AI chip stocks have experienced a sell-off since mid-June. Also, the analyst highlighted the recent scandium report. 

Additionally, Truist analyst Christopher Souther initiated with a “Hold” rating and a $250 price target, pointing toward the company’s AI-driven surge but also recommending waiting for the stock’s value to normalize. 

Susquehanna analysts kept a “Positive” rating on Bloom Energy’s stock and raised the price target from $293 to $298. Susquehanna updated its estimates and target ahead of Q2 results, taking into account the company’s power demand growth, driven by data centers and electrification. 

Baird analysts reiterated an “Outperform” rating on Bloom Energy’s stock and a $310 price target despite the scandium short report. Analysts noted that the report recycled multiple bear arguments. 

Wall Street analysts are still taking a positive stance on Bloom’s stock now, with a consensus “Moderate Buy” rating overall. Of the 27 analysts rating the stock, eight analysts gave a “Strong Buy” rating, two analysts gave a “Moderate Buy” rating, 16 analysts are playing it safe with a “Hold” rating, and one analyst gave a “Strong Sell” rating. The consensus price target of $271.04 represents a 25.7% upside from current levels. Moreover, the Street-high price target of $390 indicates an 80.9% upside from current levels.